Hermes Q3 revenues increase by 19%
At the end of September, Hermes consolidated revenues reached €3 443 million, up by 19%. At constant exchange rates, growth is 9%.
Progress in the third quarter remained solid (+15% at current exchanges rates and +8% at constant exchange rates), despite a challenging environment.
At the end of September 2015, sales progressed in all regions:
- Japan (+19%) confirmed the excellent performance seen during the first six months of the year,
- Asia excluding Japan (+5%), which gained from the opening of the Maison Hermès in Shanghai in September 2014, improved in spite of a difficult context in Hong Kong, Macao and to a lesser extent in continental China,
- America (+7%) pursued its development in an uncertain environment. For memory, the comparison basis was particularly high in Q3 2014,
- Europe (+10%) posted a good performance in Group stores, particularly in France and Italy. Sales by sector at the end of September
Growth in Leather Goods and Saddlery products (+12%) was sustained by the increase in production capacities at the two new sites in Isère and Charente. In Franche-Comté, a new workshop in Héricourt is now up and running and investments on a second site are ongoing.
Dynamic sales in Ready-to-wear and Accessories (+9%) stem mainly from the success of fashion accessories and the latest ready-to-wear collections.
The Silk and Textiles division (+3%), which is enhancing its collections with new formats and superb materials, recorded growth despite a challenging context in Greater China.
The Perfume division (+6%) continued its growth driven by Terre d’Hermès and the latest creations.
Watches (-2%), which were slightly down, are still penalized by wholesale business on a still difficult market, particularly in Asia excluding Japan.
At the end of September, currency fluctuations were favourable, representing a positive impact of €298 million on revenues.
Over the first nine months of the year, Hermès International redeemed 8,696 shares for €2.9 million, excluding transactions completed within the framework of the liquidity contract.
With the success of its unique business model, Hermès will continue its long-term development strategy based on creativity, maintaining control over know-how and securing supply.
Despite the economic, geopolitical and monetary uncertainties around the world, the group confirmed its medium-term goal for 2015, i.e. revenue growth at constant exchange rates of 8%. For the full year 2015, operational profitability should be lower than 2014 (31.5%) due to the diluting impact of currency fluctuations.